Fight Financial Peer Pressure..!

Summer vacation is
ending for my kids and most of their friends are back from summer camps and
family trips abroad or in India. Most of them went to exotic vacation spots
around the world.

On their return, the
kids spoke about their trips and all the designer clothes and bags purchased
and the upscale restaurants where they ate gourmet meals.

It seemed like there was
a competition among the children on who went for a fancier vacation, or who
went to the most expensive summer camp. I notice this peer pressure all the
time.

For instance, at
weddings, each person seems to be trying so hard to outdo

the other in their
attire that sometimes one does not know who the bride is.

Why only weddings?

Peer pressure is a part
of our daily lives, especially with the advent of social sharing platforms and
chat groups where friends and family members are uploading pictures of their
recent purchases, visits to restaurants or even talking about subscribing to
something like a new streaming service.

Having just the good old
DTH connection seems outdated these days because the trend now is to use
streaming services. It’s a different matter as to how much the streaming
service is actually used.

The worst part is that
many parents are passing on this behaviour to their children as well.

One would have thought
that this sort of pressure is a more teenage thing but unfortunately, it is all
around us. It is important to understand that just because some people have
large houses, fancy cars, go on extravagant vacations, or eat out and party
often, does not mean that they can actually afford those things.

In all likelihood, they
are in debt and running large (equated monthly installments) EMIs. One doesn’t
actually know the real story behind their lifestyle.

The typical financial
peer pressure is something like this:

1. At home..

Vacations & outings like movies, dinners
or family events.

Children’s things and
needs such as toys, clothes, birthday parties and gifts. Plus, there may be
memberships and subscriptions.

2. At work..!

Regular coffee & lunch outings, and
after-work social activities with colleagues, like celebrating personal events.
Then one must not repeat outfits often and must outsmart colleagues on
purchases.

Some ways in which you
can handle the pressure are as follows :

3. Focus on quality and create memories..!

Even if you spend Rs. 50,000 or more on a
birthday party, would your child really remember the decorations that were put
up?

Apart from the waste
each year, the child’s expectations from the birthday party would only
increase. Instead, one could plan a party with just close friends and do an
activity that the child likes.

4. Stop trying to keep
up..!

You can not let others influence how you spend
your money. I often see parents doing things out of fear of being left behind,
like sending their children for summer camps even if the child is not
interested, or planning a foreign vacation or giving their child expensive toys
just because her friend has it.

Figure out your family's
needs and plan for those. Similarly, at work, to fit in, many people spend large
amounts on clothes, shoes, and salons.

Some even go to the
extent of maxing out their credit cards. And it is not just women who do this;
men, too, spend a lot of time and money on grooming and gadgets these days.

5. Focus on your monthly
budget..!

Work out the expenses on
memberships, subscriptions, classes, movies, eating out and other non-essential
expenses. You may find subscriptions that you aren't using anymore. Stop those.
If you have 2 to 3 movie outings a month, you could skip the overpriced and
unhealthy popcorn.

Keep an upper limit for
non-essential expenses every month and stick to the plan. Remember to include
the outings with office colleagues in this monthly social budget.

6. Do not be influenced
by what you see on social media..!

For many people, social media is just a
channel to show off. Many youngsters post photos and then track the number of
likes. If they do not get more likes or
comments than their friend got, they become sad and even spend more on apparel
or a concert or a trip to get the likes.

7. Be clear about your
limitations, learn to say no..!

In order to keep up appearances, one may agree
to go for an after-office party or weekend trip even though one may not want to
spend for it or even be interested in going.

Find a way to limit such
outings. There is no harm in being honest and telling people you have other
preferences or other things to do.

We have all made some
unwise financial decisions based on peer pressure. The important thing is to
figure out a way to have a comfortable lifestyle and avoid financial peer
pressure. Instead of following others, use your money to create memories and
have time to do what really matters to you.